Until 24th March 2012, first time buyers do not have to pay Stamp Duty on property purchased for £250,000 and under.
This stamp duty relief, brought in by former Chancellor Alistair Darling to boost the market in 2010, offers a big saving at a time when every penny counts to any buyers that exchange and complete on a property before this date.
As homemovers around the country look to start the new year off with a property move, the Chief Executive of Andrews encourages potential buyers that are currently sitting on the fence to take the step and make the most of this saving.
Michael Robson says:
“January is always a very busy time for the property market, as we see lots of new homes become available.
“Traditionally, a large number of homeowners wait until after the Christmas break is over before putting their homes on the market, and use the month of January as the time to think about taking their next step property-wise.
“For buyers, of course, this means that there is plenty of choice available and some good opportunities to buy.
"I would encourage any potential buyers who are considering taking their first step on the ladder to take a look at what is out there currently and seriously think about making the commitment to buy if they are able to do so this month, as the current stamp duty relief offers a considerable saving of up to £2,500 currently.”
Once stamp duty relief ends on 25th March 2012, first time buyers will be expected to pay the same rates as existing property owners for their property transaction – currently 1% of the property value for properties priced between £125,000 and £250,000.
Properties sold for under £125,000 will remain SDLT exempt after this date.
Michael adds that the impending end of the stamp duty relief is likely to add some extra stimulus to the market for sellers at this time of year.
He says:
“I think it will definitely have an effect and sellers will see an increased interest from buyers between now and March; with savvy buyers recognising that every saving counts in the current economic climate."
